The calculations below outline how an intrinsic value for
Intel
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Intel's share price is below the future cash flow value, but not at a substantial discount (< 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for
Intel's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.

Price based on past earnings

Are
Intel's earnings available for a low price, and how does
this compare to other companies in the same industry?

High Growth Checks

Intel's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

Intel's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.

Past performance checks

Has the earnings growth in the last year exceeded that of the
Semiconductor
industry? (1 check)

Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)

Is the Return on Equity (ROE) higher than 20%? (1 check)

Is the Return on Assets (ROA) above industry average? (1 check)

Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Intel
has a total score of
6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Management

Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.

CEO

BobSwan

COMPENSATION

$16,706,700

AGE

58

TENURE AS CEO

0.9 years

CEO Bio

Mr. Robert H. Swan, also known as Bob, serves as the Chief Executive Officer and Director at Intel Corporation since January 31, 2019. He was Chief Financial Officer and Executive Vice President of Intel Corporation since October 10, 2016 until January 31, 2019 and served as its Interim Chief Executive Officer from June 21, 2018 until January 31, 2019. Mr. Swan oversees Intel’s global finance organization—including finance, accounting and reporting, tax, treasury, internal audit and investor relations information technology and the Corporate Strategy Office. From September 2015 to September 2016, Mr. Swan served as an Operating Partner of General Atlantic LLC. He joined General Atlantic in 2015 and was an Operating Partner on its Resources Group, where he provided strategic counsel to GA's portfolio companies. Mr. Swan led the General Atlantic's efforts in supporting portfolio companies as they grow through strategic mergers and acquisitions and develop their finance functions. He also worked closely with GA's Internet & Technology sector team. Prior to General Atlantic, he served as the Chief Financial Officer and Senior Vice President of Finance at Ebay Inc. from March 16, 2006 to July 17, 2015 overseeing all aspects of its finance function including controllership, financial planning and analysis, tax, treasury, audit, mergers and acquisitions and investor relations. Mr. Swan served as an Executive Vice President and Chief Financial Officer of HP Enterprise Services, LLC from February 2003 to March 15, 2006. He began his career at General Electric in 1985, serving for 15 years in numerous senior finance roles including as divisional Chief Financial Officer for GE Healthcare Europe. He served as Chief Financial Officer and Executive Vice President of Electronic Data Systems Corp. Prior to joining Electronic Data Systems Corp., he served as an Executive Vice President and Chief Financial Officer of TRW Aeronautical Systems (formerly, TRW Inc., Aeronautical Unit.) from July 2001 to December 2002. Mr. Swan served as an Executive Vice President and Chief Financial Officer of Northrop Grumman Space & Mission Systems Corporation since July 2001. He was employed at Webvan Group, Inc. from 1999 to 2001, including Chief Executive Officer from April 2001 to July 2001, Chief Operating Officer from September 2000 to July 2001 and Chief Financial Officer from February 2000 to July 2001. He served as Vice President of Finance of Webvan Group Inc., from October 1999 to February 2000 and also served as its Principal Accounting Officer. From September 1985 to October 1999, Mr. Swan held variety of positions at General Electric Company, including as Vice President of Finance and Chief Financial Officer of GE Lighting LLC from May 1998 to October 1999. From January 1997 to June 1998, he served as Vice President of Finance of GE Medical Systems in Europe. He served as Chief Financial Officer of GE Transportation Systems from October 1994 to January 1997. From May 1988 to October 1994, Mr. Swan served several assignments with GE's Corporate Audit Staff. He has been a Director of Skype Global S.à r.l. since December 2009. He has been a Director of eBay, Inc. since July 17, 2015. He serves on the board of Alignment Healthcare. He served as a Director of AppDynamics, Inc. from December 2015 to October 2016. He served as a Director of Applied Materials, Inc. from March 2009 to September 19, 2016. He served as a Director of PayPal Holdings, Inc. until July 17, 2015. He served as a Director of Radial June 2011. He served as a Director of Webvan Group Inc. since April 2001. Mr. Swan holds a B.S. in Business Administration from the State University of New York at Buffalo and an M.B.A. from the State University of New York at Binghamton.

CEO Compensation

Bob's compensation has been consistent with company performance over the past year, both up more than 20%.

Bob's remuneration is higher than average for companies of similar size in United States of America.

Management Team Tenure

Average tenure and age of the
Intel
management team in years:

1.5

Average Tenure

53

Average Age

The average tenure for the Intel management team is less than 2 years, this suggests a new team.

Management Team

Bob Swan

TITLE

CEO & Director

COMPENSATION

$17M

AGE

58

TENURE

0.9 yrs

Steve Rodgers

TITLE

Executive VP & General Counsel

COMPENSATION

$16M

AGE

52

Navin Shenoy

TITLE

Executive VP & GM of Data Center Group

COMPENSATION

$10M

AGE

44

TENURE

4.3 yrs

Murthy Renduchintala

TITLE

Chief Engineering Officer and Group President of Technology

COMPENSATION

$13M

AGE

53

TENURE

3.5 yrs

George Davis

TITLE

Executive VP & CFO

AGE

60

TENURE

0.1 yrs

Ann Kelleher

TITLE

Senior VP and GM of Manufacturing & Operations

AGE

52

Kevin McBride

TITLE

VP of Finance

AGE

48

TENURE

1.5 yrs

Mike Mayberry

TITLE

Senior VP

AGE

61

TENURE

1.3 yrs

Paula Tolliver

TITLE

Chief Information Officer & Corporate VP

AGE

53

TENURE

2.8 yrs

Mark Henninger

TITLE

VP of Finance and Director of Investor Relations

Board of Directors Tenure

Average tenure and age of the
Intel
board of directors in years:

2.2

Average Tenure

56.5

Average Age

The average tenure for the Intel board of directors is less than 3 years, this suggests a new board.

News

Simply Wall St News

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Company Info

Description

Intel Corporation offers computing, networking, data storage, and communication solutions worldwide. It operates through Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other segments. The company offers microprocessors, and system-on-chip and multichip packaging products. It also provides NAND flash memory products primarily used in solid-state drives; and programmable semiconductors and related products for communications, data center, industrial, and military markets. In addition, the company develops computer vision and machine learning, data analysis, localization, and mapping for advanced driver assistance systems and autonomous driving. Its platforms are used in notebooks, systems, and desktops; cloud, enterprise, and communication infrastructure market segments; and retail, automotive, industrial, and various other embedded applications. It serves original equipment manufacturers, original design manufacturers, industrial and communication equipment manufacturers, and cloud service providers. Intel Corporation has a collaboration with Telefonaktiebolaget LM Ericsson (publ) to develop software defined infrastructure for network functions virtualization, distributed cloud, and 5G applications. The company was founded in 1968 and is based in Santa Clara, California.

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